TPG RE Finance Trust(TRTX) - 2025 Q4 - Annual Results

Financial Performance - Net income attributable to common stockholders for Q4 2025 was $0.2 million or $0.00 per diluted share, while for the full year it was $45.5 million or $0.57 per diluted share[8] - Distributable earnings for Q4 2025 were $18.5 million or $0.24 per diluted share, and for the full year, they were $76.8 million or $0.97 per diluted share[8] - Total net income for the year ended December 31, 2025, was $60.3 million, with net income attributable to common stockholders at $45.5 million[63] - Comprehensive net income for the year ended December 31, 2025, was $60,319, down 18.9% from $74,335 in 2024[68] - Net interest income for Q4 2025 was $25,443, a 3.1% increase compared to $24,680 in Q4 2024[67] - The company experienced a net interest income of $25.4 million for Q4 2025, after accounting for interest expense of $49.0 million[13] Loan Portfolio - The total loan investment portfolio reached $4.3 billion with a weighted average all-in yield of 7.15%[8] - Originated nine first mortgage loans in Q4 2025 with total commitments of $927.0 million, and 20 loans for the full year with commitments of $1.9 billion[8] - Total loan repayments for the year ended December 31, 2025, amounted to $987.9 million, including $931.5 million of full repayments across 15 loans[8] - Total loan commitments reached $4.3 billion, with an outstanding principal balance of $4.1 billion and a weighted average all-in yield of 7.15%[18] - Total loan originations for Q4 2025 amounted to $927.0 million, with a weighted average interest rate of Term SOFR + 2.66%[29] - The loan portfolio composition included 55.4% bridge loans and 24.8% light transitional loans[19] Liquidity and Capital Structure - The company maintained $143.0 million of available near-term liquidity, including $87.6 million in cash[8] - Debt-to-equity ratio increased from 2.14x as of December 31, 2024, to 3.02x as of December 31, 2025[8] - The debt-to-equity ratio stood at 3.02x, while the total leverage ratio was 2.64x as of December 31, 2025[15] - The total financing capacity of the company is $4.9 billion, with an outstanding principal balance of $3.3 billion[44] - The company repurchased 3.2 million shares of common stock at an average price of $7.90 per share, totaling $25.3 million for the year[8] Credit and Risk Management - The company reported a quarter-end allowance for credit losses of $77.4 million, an increase of $11.3 million from $66.1 million as of September 30, 2025[40] - The company has a general reserve of $77.4 million, with no specifically identified loans[41] - The allowance for credit losses increased to $74,503, up 21.0% from $61,558 in 2024[66] - The company reported a credit loss expense of $11,277 for Q4 2025, compared to $4,629 in Q4 2024[67] - The weighted average loan risk rating remained unchanged at 3.0 year-over-year[8] - The company’s CECL reserve per share increased from $0.84 to $0.99 during the quarter[13] Asset Management - The real estate owned portfolio has a total acquisition date fair value of $247.9 million and a current carrying value of $237.7 million[48] - Total assets increased to $4,406,230, up 18.1% from $3,731,429 in 2024[65] - Loans held for investment rose to $4,103,022, a 25.0% increase from $3,278,588 in 2024[66] - Total liabilities increased to $3,338,207, reflecting a 27.5% rise from $2,617,388 in 2024[66] Company Overview - The company is externally managed by TPG RE Finance Trust Management, L.P., part of TPG Real Estate, a global alternative asset management firm[81] - TPG RE Finance Trust, Inc. focuses on originating, acquiring, and managing first mortgage loans secured by institutional properties in primary and select secondary markets in the U.S.[81] - The company emphasizes maintaining or improving current operating cash flow through its loan structures, including bridge and transitional loans[76] - The company classifies loans based on property types, including mixed-use and life science properties, with specific criteria for each classification[78] Shareholder Information - The weighted-average common shares outstanding for the quarter ended December 31, 2025, were 79,299,265, resulting in earnings per common share of $0.57[63] - Dividends declared per common share remained stable at $0.24 for both Q4 2025 and Q4 2024[68] - Total stockholders' equity as of December 31, 2025, was $1.068 billion[64] - Total stockholders' equity decreased to $1,068,023, down 4.1% from $1,114,041 in 2024[66]